UPDATE: Goldman Sachs Raises PT to $216 on Equinix on REIT Commitment
Goldman Sachs reiterated its Neutral rating on Equinix (NASDAQ: EQIX) but raised its price target from $195 to $216.
Goldman Sachs commented, "EQIX announced that its Board of directors approved a plan for the company to convert to a REIT. The company intends to file for a private letter ruling from the IRS by year end, with expectations to elect REIT status for 2015. … We view the certainty around the REIT commitment positively, but we remain Neutral rated on EQIX as we believe the share price already values the firm as a REIT. We adjust our price target to $216 from $195 as we move to a 100% REIT-weighted methodology (from 75% + 25% nonREIT/DCF-based)."
Equinix closed at $195.28 on Friday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.